Marvin Mandel, Governor                        1335

REQUIRING political subdivisions to enter into agreements with
certain institutions, organizations and corporations for a payment
in lieu of real property taxes in connection with the construction,
operation and management of certain senior citizens housing.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 9(7) (a-1) of Article 81 of the Annotated Code of
Maryland (1969 Replacement Volume), title "Revenue and Taxes,"
subtitle "What Shall Be Taxed and Where," be and it is hereby
repealed and re-enacted, with amendments, to read as follows:

9(7).

(a-1) In any case in which real property owned by such institu-
tions or organizations or by any nonprofit corporation exempt
from income taxation under the provisions of Section 288 [(g)]
(d) of this article, engaged solely in the construction, operation
and management of multi-family rental housing structures and such
related facilities as dining halls, community rooms, infirmaries and
other essential service facilities newly constructed after September
23, 1959, ninety-five percent (95%) or more of the cost of which
was financed under the loan program of the United States gov-
ernment provided for under the senior citizens housing program
pursuant to Section 202 of the national Housing Act of 1959, as
amended, or any other program of the United States government
under which such institution, organization or nonprofit corpora-
tion provides housing for senior citizens, shall yield rental revenues
which are controlled under such loan program of the United States
government so as not to produce any net income and to be operated
on a nonprofit basis, the political subdivision in which such prop-
erty is located is authorized to SHALL enter into an agreement with
any such institution, organization or corporation for the payment of
a negotiated sum or sums in lieu of taxes, and, upon approval of
said agreement by the executive body of such subdivision, and in
Baltimore City by the Board of Estimates of the Mayor and City
Council of Baltimore, the negotiated payment shall be in lieu of
all State and local assessments and taxes upon real property under
this article; and said agreement may include the abatement or
reduction of any previous tax assessment upon said property. Said
payment shall be divided between the State and such political sub-
division in accordance with the ratio which the rate of tax imposed
by the State bears to the rate of tax imposed by such political
subdivision.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1971.

Approved May 24, 1971.

CHAPTER 637
(Senate Bill 94)

AN ACT to add new Sections 157N through 157U, inclusive, to
Article 56 of the Annotated Code of Maryland (1968 Replacement
Volume and 1970 Supplement), title "Licenses," to follow imme-